Republican leaders say the new budget maintains all state core service funding, provides tax relief to individuals and businesses, and makes targeted new investments in key priorities like education, economic development, health care and infrastructure.

The agreement also replenishes more than $700 million in state reserve funds that were significantly reduced to offset pandemic-related revenue reductions last year.

Under the agreement, the 2022 budget would be $8.3 billion.

The agreement, which is still being finalized between the Legislature and Gov. Kevin Stitt:

• Common education funding increased more than $210 million, and received an appropriation of $3.16 billion.
• Provides $50 million in caps on the Equal Opportunity Scholarship program, $25 million for public schools and $25 million for private schools.
• Provides tax relief for families and business.
• Reduces the top personal income tax rate from 5 percent to 4.75 percent.
• Reduces the corporate income tax rate from 6 percent to 4 percent.
• $30 million for a film tax incentive.
• Expansion of broadband service in  areas statewide through a $42 million tax incentive for providers.
• More than $35 million in new economic development funding.
• Restores the Earned Income Tax Credit refundability, supporting low- and moderate-income working families.
• $164 million to fund Medicaid expansion approved by a vote of the people.
• Restores historic sales tax credit for OU Health, allowing them to train a significant number of additional nurses and medical doctors.
• $9.9 million for the creation of a children’s mental health unit at OU Health.
• Additional funding for the Attorney General’s Office to push back against federal overreach and represent the state in legal challenges associated with the McGirt case.
• $15.4 million for Rural Economic Action Plan that makes grants for infrastructure projects in rural Oklahoma.
• Restores funding to state pension funds used last year to mitigate the impact of pandemic-related budget reductions.

Legislation containing the agreement will begin progressing through the legislative Joint Committee on Appropriation and Budget in the coming days. The general appropriations bill will be House Bill 2900.

The budget was built on the Board of Equalization’s February certification of $9.6 billion in revenue available for appropriations. Of that figure, the agreement spends $8.3 billion and allocates the rest to tax relief, replenishing reserves or replenishing off-the-top funding temporarily redirected during the pandemic last session.

The constitutional deadline for adjournment of the legislative session is 5 p.m. May 28.